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Stone Brewery Co.

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on 25 June 2015

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Transcript of Stone Brewery Co.

Organic Beer
High quality, great tasting organic beer that's sustainably produced & reasonably priced
New to Stone Brewery Co.
Consumer Demand
Analysis of Beer Industry

Analysis of Market Demand
$246.5 billion world-wide beer industry

"Craft brewery" definition:
small, independently-owned commercial breweries that employ traditional brewing methods and emphasize flavor and quality

March 2013:
2,416 U.S. breweries
with 2,360 considered craft breweries

Healthy/Organic Lifestyle Conditions
Friday, May 2, 2014
Vol XCIII, No. 311
Stone Brewery's Organic Beer!
Stone Brewery
Organic Bistros & Beer
Idea Pitch

San Diego Tribune
Stone Brewery launches an organic beer

Fortune Magazine's April 2014 cover: "How Whole Foods is Taking Over America"

Sales of organic food
$3 billion in 1997
$10 billion in 2003 (USDA)

Projected growth: 20% annually
Increased illnesses leads to increased awareness of food ingredients, pesticides, additives, hormones, etc.

2012 Hartman Group study
"Motives to Buy Organic"

1. Concerns about health & food safety
2. Concern for the environment
The 5 P's
Stone Brewery Co.
Present & Future
Present Practices
10th largest craft brewery
17th largest brewery in the United States

Beer Advocate: #1 "All Time Top Brewery on Planet Earth"

2013: 213,277 US beer barrels

May 2013: Stone Brewing opened in the Liberty Station

Stone Company Stores in Oceanside, South Park, Pasadena, & San Diego on Kettner

2013: San Diego Airport location
Four collaborations planned for 2014

Continued participation in international beer competitions: World Beer Cup and Great American Beer Festival

Increase capacity: "We are our own competition"

Focus on fulfilling customer's changing needs and demands

Explore new product innovation: seasonal varieties and organic beer options
Future Practices
Porter's Five Forces
Competitive Rivalry within an Industry
Bargaining Power of Suppliers
Threat of New Entrants
Bargaining Power of Buyers
Threat of Substitutes
Planet, People, Profit, Prosperity and Peace
No chemicals, pesticides, nor GMO's in the production of grain, wheat, hops, or other raw materials
No synthetic fertilizers
No sewage sludge
No colorings or artificial flavors
No irradiation
Use recycled glass
Use compostable material for the beer label
Healthier choice for all people, from babies to adults
More nutrients are found in organic foods
Less likelihood of allergies
Growing demand for organic foods and drinks
It is apparent that this idea will make money based on other organic beer lines that are successful in the market
Keeping jobs in US
Underlying good intentions regarding health and the environment
Phase I
Step 2
Phase I
Establish organic supply chain:
*Collaborate with American Organic Hop Grower Association (AOHGA) for best fit suppliers

In house innovation driven by Stone's expert brew masters for new premium flavor

Brand development:
*Beer name and label design competition
Phase II
Phase III
Launch the new organic beer within all San Diego Stone restaurants and solicit instant customer feedback

Offer promotions and special introductory pricing

Tastings offered at special events in San Diego

Develop and implement market expansion strategy

of Events
Peace in a Pint
Keys to Success
Increase customer awareness of organic benefits
Vocal leader in organic beer production
Manage costs to keep prices between $164 - $218 per 1/2 barrel keg
No sacrifice of flavor in going all organic
Align marketing with Stone's culture and brand
Organic Beer Forecast in 2014
Sales Forecast
Sales Funnel
Insert here the umbers and/or examples of prospects
Production/ Sales Forecast
Potential Customers
Break-Even Analysis
Value Proposition
Organic Beer Is New To Stone Brewery Co.
Opportunity within the beer industry to merge “health” & “organic”
Consumer demand of organic, non-GMO & healthy products

Good taste
Reasonable cost
Environmentally friendly
Quality, organic ingredients

Changing beer industry with competitors introducing “ultra light” & other healthy beer options
Changing consumer mindset regarding organic, healthy food & drinks

Stone Brewery's Organic Beer
Value Proposition:

Meet changing consumer demands: a health-conscious movement
Industry leader and first-to-market
Focus is on taste
It's organic!
Environmentally sustainable production and ingredients
Organic Beer at Stone Brewery Co.
Market leader in organic food and beer

All Stone food and beverage organic by 2020

Improve the penta-bottom line in the long run

Value Proposition
Successful test market launch of organic beer leads to a full organic product line rolled out nationwide
Thank you

David Fike
Auty Moayeri
Paul Pintek
Maria Szczepaniak
Alexa Williams

GSBA 517 Sustainable Business Model Design
Professor Gomez
Spring 2014
What makes the value proposition unique?
How to reach the end customer:
Bars: Bottle Craft, Tornado
Restaurants: Tender Greens, Stone Bistro,
Retailers: Whole Foods, Vons
Cancer-known causing agents:
Beer's Harmful Ingredients
GMO Corn Syrup
GMO Corn
High Fructose Corn Syrup
Fish Bladder (clarification process)
Monosodium Glutamate (MSG)
Natural Flavors
GMO Sugars
Caramel Coloring
Insect-Based Dyes
Carrageenan (thickening agent)
Bisphenol A (BPA) (plastic lining of cans)
Propylene Glycol (thickening preservative)
Source: organics.org/viralscape.com
Financial Implications:
Higher Costs
Opportunity Cost against Existing Line
Cannibalization Effect

Healthier choice
More nutrients are found in organic foods
Less likelihood of allergies

Growing demand for organic foods and drinks
Successful beer lines
Underlying good intentions regarding health and the environment

...Room to Grow
Full transcript